NOTE: VIDEO AT THE END OF ARTICLE
Senator Adam Schiff Faces DOJ Referral Over Alleged Mortgage Fraud: Primary Residence Discrepancy Sparks Federal Inquiry
In what could become a high-profile legal battle, Senator Adam Schiff is now under scrutiny following a criminal referral to the Department of Justice. The allegations center on a potential case of mortgage fraud involving a Maryland home that Schiff claimed was his “primary residence,” despite serving as a California congressman — and later senator — for over two decades.
The controversy erupted after federal officials determined there was sufficient evidence to warrant further investigation into Schiff’s mortgage filing with Fannie Mae, a government-sponsored mortgage giant. The case hinges on a mortgage loan Schiff obtained in 2023, which required the borrower to designate the property as a primary residence in order to qualify for favorable terms, including a reduced interest rate.
Discrepancy in Residency Claims
The heart of the issue lies in a key contradiction: Schiff’s mortgage documents state that a Maryland home was his primary residence, while numerous public statements — including one caught on video — affirm that California has always been his true home.
In the resurfaced clip, Schiff says clearly: “But our principal residence, our primary residence, is in California. It always has been, always will be.”
This statement reportedly came after he signed the mortgage agreement listing Maryland as his primary residence. That timing could be crucial, as it suggests he may have knowingly provided false information on a federal loan application.
Federal law is clear: knowingly submitting false information to obtain a mortgage is considered mortgage fraud, a felony that can carry fines, prison time, or both.
What Is Mortgage Fraud?
Mortgage fraud occurs when a borrower intentionally misrepresents or omits key information during the mortgage application process. Declaring a property as your primary residence when it is not can be especially serious, as primary residences typically qualify for more favorable lending terms.
The benefit is obvious: lower interest rates, better qualification metrics, and access to federally backed programs. But the penalty for lying? It can be steep. In many cases, each individual mortgage payment made under fraudulent pretenses can count as a separate criminal violation.
If that holds true in Schiff’s case, the legal exposure could be substantial.
Federal Agencies Get Involved
The referral came after a review by Fannie Mae’s Financial Crimes Division. On July 16, 2025, President Donald Trump confirmed that Fannie Mae had referred the case to the Department of Justice. The Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, also confirmed it had submitted the case for DOJ review.
A senior administration official, speaking to The New York Post, said:
“It is extremely serious and [Schiff] is not taking it seriously.”
That same official hinted that Schiff could face multiple criminal counts if investigators determine each monthly payment was made under a false claim of residency.
Political Response
Unsurprisingly, Schiff has denied any wrongdoing and dismissed the referral as a politically motivated attack. He claims the investigation is a clear attempt by the Trump administration to target political adversaries.
Critics of the referral argue that Schiff has long owned property in both California and Maryland and that the designation of primary residence is sometimes fluid for elected officials who split time between Washington, D.C., and their home districts.
However, that argument may not hold up under legal scrutiny, especially when a statement of primary residence is made under penalty of perjury on a federally backed mortgage application.
Legal Experts Weigh In
Legal analysts say the investigation will likely turn on two key questions:
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Did Schiff knowingly misrepresent his primary residence on the mortgage documents?
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Was there intent to gain a financial benefit (i.e., better mortgage terms) by making that statement?
If the answer to both is “yes,” then federal prosecutors could proceed with charges.
Intent is notoriously difficult to prove in cases like this. However, the existence of public statements contradicting the mortgage application — especially a video clip — could serve as powerful evidence.
Prior Inaction
The initial discrepancy had reportedly surfaced during the Biden-Harris administration, but no formal action was taken at the time. Now, under the Trump administration, the matter appears to be gaining serious traction.
Sources indicate that the DOJ is now reviewing the mortgage documents, past statements, and the timeline of events to determine whether formal charges are warranted.
The Bigger Picture
Schiff’s case is just the latest in a growing list of high-profile mortgage fraud investigations targeting public figures. While the justice system often gives wide latitude to elected officials with dual-state responsibilities, falsely declaring a primary residence on a federally backed loan is one line that the government does not take lightly.
The fact that Schiff has served in California’s 30th congressional district since 2001 — and was elected to the U.S. Senate in 2024 — makes it extremely difficult for him to argue that Maryland was ever his “true” primary residence.
What Happens Next?
It remains to be seen whether the DOJ will proceed with a full criminal investigation. If they do, Schiff could face legal penalties, reputational damage, and political fallout — especially given his prominent role in past congressional investigations and impeachments.
At this stage, Schiff has not addressed the specific mortgage documents in question, nor has he denied signing them.
Final Thoughts
As the case unfolds, one thing is certain: the truth behind Adam Schiff’s residency claims — and the implications for his mortgage — will be scrutinized in the court of law and public opinion.
Whether this is a politically motivated hit job or a legitimate case of mortgage fraud, the investigation could reshape the public perception of one of the most well-known Democratic lawmakers of the last 20 years.
Stay tuned.
